Fresh Start for Kangaroo Island Group

AUSTRALIA - A South Australian aquaculture company that called in the administrator over this year ha sreached an arrangement to continue operations in a new form.

The Kangaroo Island company with a specialist abalone division, Kangaroo Island Abalone, together with Kangaroo Island Seafood and Smith Bay Land are expe cted to pay its creditors 50 per cent of their debts.

The company is reported to have got into difficultiues when the bank, the Commonwealth Bank, refused to refinance the company, which had debts of A$5.2 million.

The bank is expected to receive A$2.2 million for its A$3.7 million debt, according to reports in Adelaide Now.

Adelaide Now said the administrator Peter Macks declared it as a fantastic result considering the complexity of the industry.

"It has been good for us because the business has gone through a turnaround," he said.

The security of the business means the employees with keep their jobs on the island.